TOP IDEAS: Avante Logixx’s (TSXV: XX) trio of acquisitions
has built the annual revenue base to $20 million. Short-term, the Company is
positioned to deliver good profit growth. Longer-term, the Company may be a
takeover candidate in the active M&A security services space.

Investorfile's share price accumulation target of $0.40 for
Avante Logixx Inc. was reached on January 7, 2014. For the record, we do not
revise share price targets for our Investorfile Top Ideas - Small Cap Value
Stocks. We have positioned our blog to be one of the first providers of a
pragmatic perspective of a small cap company stock's potential worth, where
there may be uncovered value that has been largely overlooked by the investment
community.

Even though this stock had exceeded our price accumulation
target of $0.40 but has retreated since, the Investorfile blog views the shares
of Avante Logixx Inc. (TSXV: XX - $0.25) as an excellent buying opportunity to
take advantage of today as one of our Top Ideas - Small Cap Value Stocks.

Avante Logixx provides best-in-class and high-end
residential and commercial security services, including system design and
installation, rapid alarm response, alarm monitoring, video analytics,
locksmith services and hardware and secure transport through the use of
advanced technology, with a focus on client service. Based in Toronto, the Company has grown to approximately 120 employees.

Over the past two years Avante Logixx has closed on three
acquisitions: INTO-ELECTRONICS (INTO), a Toronto-based commercial and high-rise
security integration, monitoring and electronic building management firm; LVS
Inc., a Greater Toronto Area high-end custom residential security and
automation services integrator; and City Wide Locksmiths Ltd., a provider
of residential and commercial locksmith services and a distributor of
decorative door hardware operating in the Greater Toronto Area, of which Avante
acquired a 70% interest.

We recently revisited with the Management and Directors of
Avante Logixx at its Annual General Meeting held last week at the Company’s
head office and main security monitoring centre. As such, we have come away
with the opinion that the Company has executed on a number of strategic fronts
which point towards strong financial performance for fiscal 2017.

The most significant achievement is the integration of
Avante’s recent acquisitions. Management indicated at the AGM that the integration
process has progressed to a point that the business benefits derived from a
larger operation such as cross-selling opportunities and cost savings should
favourably impact the Company’s profitability in each of the remaining quarters
of fiscal 2017 and beyond.

Avante Logixx has already reported Q1 results for fiscal
2017: Revenues of $4.72 million were up 41%, adjusted EBITDA of $628,000 was up
49% with earnings per share (EPS) of $0.003. We feel the remaining three
quarters of fiscal 2017 could produce sequential quarter to quarter gains for
Revenues, EBITDA and EPS.

With three acquisitions made and largely integrated, we
believe Avante’s management will continue with its active mergers and
acquisitions (M&A) mandate to further support its multi-year growth
potential. At the AGM, Management said that the pipeline of acquisitions opportunities remains robust.The Company has the financial capacity to make new acquisitions as it generates significant amounts of cash from its recurring revenue streams and currently holds
a very small amount of debt.

We firmly believe that Avante Logixx continues to execute on
its growth strategy which has positioned the Company for meaningful earnings
growth in fiscal 2017 with still more upside potential from M&A. Therefore,
the Investorfile blog continues to reiterate its buy recommendation of the
Company’s shares by suggesting (again) that small cap investors should
accumulate Avante Logixx’s stock up to a price of $0.40 from its current
trading levels.

On a macro basis, security services companies are experiencing a wave of large scale M&A activity. Very high takeover multiples are being paid for this industry's recurring revenue streams. With
its highly scalable business model and a growing stream of recurring revenues,
Avante Logixx could be an attractive takeover candidate in the not-too-distant
future and for a stock price that would be at a big premium to our accumulation
target of C$0.40.

This article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
article is subject to change without notice, and the author assumes no
responsibility to update the information contained in this article. The
information contained within this article should not be construed as offering
of investment advice. Those seeking direct investment advice, should consult a
qualified, registered, investment professional. This is not a direct or implied
solicitation to buy or sell securities. Readers are advised to conduct their
own due diligence prior to considering buying or selling any stock.

Investorfile.com is not engaged in an investor relations agreement with Avante
Logixx Inc. nor has it received any compensation from Avante Logixx Inc. for
the preparation or distribution of this article.

The author of this article has acquired and may trade shares of Avante Logixx
Inc. through open market transactions and for investment purposes only.

Hi Gerry,
Your philosophy is focused on principles that have been shown to produce above average results over time and your record has clearly proven that.
Congratulations on a great blog and thank you for the hard work that you do in sharing and updating your ideas; it is much appreciated.